QUESTION 1

TK Suppliers is a wholesale company. They focus primarily on office supplies, furniture and small electronic items. TK Suppliers uses the perpetual inventory system. For one specific inventory item they had the following transactions for the month of April.

There were 210 items at the beginning of the month, with a cost of $50 each.

210

50

Date

Transaction

Quantity

Price

Apr 5

Purchased items

300

$51

Apr 7

Sold items

410

Apr 15

Purchased items

350

$53

Apr 19

Purchased items

440

$49

Apr 27

Sold items

390

Calculate the value of COGS for the month of April and the value of ending inventory at the end of April using the FIFO method.